Monday, December 01, 2014

The problems with MAS did not start with the dissapearance of flight MH370 or the shooting down of MH17 - it was there for sometime. What was the cause? Well, it would have been mis-management when we now hear that MAS was paying RM60 for Nasi Lemak...

Pua blamed MAS's lopsided contracts with companies such as Brahim's Airline Catering Sdn Bhd for the carrier's downfall, citing as example the RM60 cost of nasi lemak, which he said was excessive. "How to be profitable like that? "I fly on Air Asia and only have to pay RM12.50 for their delicious nasi lemak, this is also expensive but at least Air Asia is profitable," Pua added.

MAS has about 20,000 employees - and there is talk now that they can function with only 14,000 when a NEW entity, Malaysian Airlines Berhad, eventually takes over the national carrier. Was the employees the cause of the downfall of MAS? Were they lazy or 'under-worked' by MAS? Were there about '6.000' unnecessary employees? I do not think so, because I see all MAS employees being hardworking people - so, is MAS going to downsize. Or maybe they are just reducing employees - and will use workers supplied by third party(contractor for labour system?)

Parliament passes MAS bill

Malaysia
Airlines has been reeling from two major air disasters this year,
forcing a major overhaul led by state fund Khazanah Nasional. – Reuters
file pic, November 27, 2014.

The Dewan Rakyat today passed
the Malaysian Airline System (MAS) Bhd (Administration) Bill 2014, which
provides for the troubled carrier to be operated by a new entity.The
bill provides for Malaysia Airlines Berhad (MAB) as the airline's new
administrator and operator, as well as its wholly owned and partially
owned subsidiary companies.
During the debate on the bill, Tony Pua (DAP-Petaling Jaya Utara) said
that an act alone could not save the ailing airline as its failure was
caused by bad management.
He said directly negotiated contracts as opposed to open tender, and cronyism, were also the reasons why MAS had failed.
"But we still see direct negotiations and the New Economic Policy is
being promoted as helping the Malays when it is actually being misused
to help cronies.
"If we don't correct all these, we will continue to see bailouts like
this being brought to Parliament, this will not be the last," he said.Pua blamed MAS's lopsided contracts with companies such as Brahim's
Airline Catering Sdn Bhd for the carrier's downfall, citing as example
the RM60 cost of nasi lemak, which he said was excessive.
"How to be profitable like that?
"I fly on Air Asia and only have to pay RM12.50 for their delicious
nasi lemak, this is also expensive but at least Air Asia is profitable,"
Pua added.
Datuk Raja Kamarul Bahrin Shah Raja Ahmad (PAS-Kuala Terengganu) said
contracts like Brahim's which was a 25-year deal should be reviewed as
promised by the government.
He said Youth and Sports Minister Khairy Jamaludin was an interested
party as Brahim's chairman, Datuk Ibrahim Ahmad Badawi, was his wife's
uncle.
Raja Kamarul questioned the need for the amendment this morning, saying it was unfair and sneaky.
"Khairy, a minister, is an interested party. Did he have a part in this
last-minute change and is he going to vote (on the bill)," he asked.
Hanipa Maidin (PAS-Sepang) wanted to know if the fate of the employees
will be protected, saying this needed to be looked into as the problems
faced by the carrier were not contributed by the staff.
Instead, he said those who created the problems, such as former MAS
chairman Tan Sri Tajudin Ramli, were protected by the government.
Wong Chen (PKR-Kelana Jaya), in questioning the amendment, said it
guaranteed existing suppliers that their contracts with the airline
would be continued at the same rate.
He said the original clause had mentioned that this would be at the
discretion of the administrator, adding that the amendment effectively
took away the discretionary powers of the administrator.
Minister in the Prime Minister's Deparment, Datuk Seri Abdul Wahid
Omar, when winding up the debate, explained that the discretion remained
with MAS's new administrator despite the amendment.
He said while the administrator was allowed to renegotiate contracts
and to appoint new suppliers, there must be continued supply of goods
and services with existing suppliers so that the airline's business was
not disrupted.
The act shall apply for a period of five years, or until MAB is listed on the stock exchange, whichever is earlier.
The bill is part of plans by sovereign state fund Khazanah Nasional to
restructure MAS, which has been in the red following two major disasters
this year.
Flight MH370 to Beijing is still missing with 239 on board after nearly
nine months, while flight MH17 enroute from Amsterdam to Kuala Lumpur
was shot down over war-torn eastern Ukraine in July, killing all 298
people on board. – November 27, 2014.

- See more at:
http://www.themalaysianinsider.com/malaysia/article/parliament-passes-mas-bill#sthash.DgT1P3w8.dpuf

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